Former Canaan Chairman’s Crypto Project Hacked: Insider Turns Fugitive

• Jack Kong, ex-chairman of Canaan, faces crypto project hack from within.
• Insider hacker flees to Thailand, yet is arrested and extradited to China within 48 hours.
• Hacker’s longstanding undercover operation involved capturing passwords and tampering with hardware wallets.

In an alarming revelation, Jack Kong, the former chairman of the leading computing hardware company Canaan, disclosed a serious breach in one of his crypto investments. This wasn’t an external cyber-attack but a betrayal from within – an insider was the mastermind behind the theft.

Having gained Kong’s trust, this inside operative spent significant time undercover, meticulously photographing critical passwords and even going to the extent of modifying hardware wallets. Their elaborate scheme, however, didn’t go unnoticed for long.

Jack Kong, the former chairman of Canaan, said that a cryptocurrency project he invested in was stolen by an insider. The hacker fled to Thailand but he was arrested and returned to China within 48 hours after working with the Chinese police. The insider hacker has been lurking…

— Wu Blockchain (@WuBlockchain) October 1, 2023

Upon realizing the magnitude of the hack, the insider decided to flee, choosing Thailand as a sanctuary. But his escape wasn’t to last. Thanks to the prompt collaboration between Chinese law enforcement and their Thai counterparts, the hacker was arrested and subsequently extradited to China in a swift 48-hour operation.

The rapid arrest not only highlights the efficiency and reach of Chinese authorities in such matters but also serves as a cautionary tale for the crypto industry. Trust, even when placed in close associates, can sometimes lead to vulnerability. With the crypto landscape’s evolving challenges, both individuals and institutions must remain vigilant, continuously updating security protocols and maintaining a skeptical approach to internal and external threats.

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